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EU Antitrust Warning Looms Over Adobe’s $20 Billion Bid for Figma

 |  November 14, 2023

Adobe’s ambitious $20 billion bid to acquire the cloud-based designer platform Figma is reportedly set to receive a stern warning from the European Union (EU) in the coming days, according to three individuals familiar with the matter. This impending antitrust warning is expected to intensify the pressure on Adobe to provide remedies to address concerns raised by EU regulators.

The EU’s heightened scrutiny of tech deals globally reflects growing apprehensions about major corporations potentially acquiring smaller rivals to either stifle competition or bolster their dominance in the market. Against this backdrop, the European Commission is preparing a statement of objections, outlining its concerns regarding the proposed acquisition, which will be sent to both Adobe and Figma in the imminent days, reported Reuters.

These objection statements serve as a formal declaration of the European competition watchdog’s worries about potential anti-competitive implications arising from the deal. The move follows the EU agency’s initiation of a comprehensive investigation into Adobe’s bid back in August.

Read more: EU Regulators To Asses Adobe’s $20 Billion Figma Deal

At that time, the European Commission expressed apprehension that the acquisition could not only diminish competition in the worldwide markets for interactive product design tools but also create barriers for other industry players.

Both the European Commission and Adobe, when approached for comments, declined to provide any insights into the ongoing investigation.

Companies under the scrutiny of antitrust regulators often wait for the formal statement of objections to gain a precise understanding of the regulatory concerns before presenting potential concessions or remedies. This strategic move allows them to tailor their responses more effectively.

Figma, headquartered in San Francisco, has gained significant traction with its web-based collaborative platform for designs and brainstorming. The platform is utilized by prominent tech entities such as Zoom Video Communications, Airbnb, and Coinbase.

As the EU antitrust warning hangs over Adobe’s proposed acquisition of Figma, the tech industry will be watching closely for the unfolding developments, anticipating the potential impact on the competitive landscape and the future of the cloud-based design platform.

Source: Reuters